Manage Cash Expert Panel

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Sam Knox, CFO Magazine, AribaLIVE 2011.
Panel speaks out of order of slides, apologies for any confusion.
http://exchange.ariba.com/community/events/aribalive

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  • Speaker: Christiaan van der Valk, CEO, TrustWeaver   Christiaan co-founded (2001) TrustWeaver, a Sweden-based provider of innovative software-as-a-service IT compliance solutions servicing many of the world’s largest corporations. At ICC’s Paris-based secretariat, Christiaan managed policy and self-regulatory activities relating to e-business, telecom and IT. Christiaan has been closely involved with international and European legal, policy and standards projects in the fields of e-commerce and in particular security, contracting, privacy and e-signatures. He is a core member of the CEN E-Invoicing Workshop, member of a number of European Commission focus groups, and co-chairs the ICC EBITT Commission’s Task Force on Security and Authentication. So we are clearly fortunate to have the time and expertise of our special guest, Christiaan van der Valk. Christiaan.
  • This Hackett Group survey of top executives across all functions regarding their top strategic priorities for 2010 and beyond found similar themes in terms of the need to improve cash flow and working capital, increase efficiencies, and strategic alignment. We have looked at numerous studies regarding the priorities of top executives…..and most come to similar conclusions….manage cash flow and improve working capital, improve process efficiency and effectiveness, improve agility to have greater visibility and control over revenue and costs, align strategies across the enterprise. These key issues have been identified as being extremely important to the success of many companies.
  • Moderator: Global commerce and finance are in a tumultuous period. How is this affecting the treasury and cash management operations of companies and the banks that serve them? “ From the corporate perspective, we look at it as the banks’ hoarding. The liquidity is there in the banks, but it is not coming out to the corporates. Banks are not willing to lend to each other, let alone to lend to corporates right now. GE is a big, established name, so we are probably in a better position than most, but the current situation forces us to think about where can we get liquidity—and that is not necessarily from the banks that are providing the best services and the best technological capabilities. The downside to that is, even if we do obtain the credit that we need, we are going to be operating in a less efficient environment. Supply Chain Finance (SCF) technology and bank providers are developing new models for trade finance. New technologies and financing approaches are emerging. The move to a more diverse combination of financing techniques in the supply chain seems to be a longer-term shift. 57% of companies say that such supplier financing techniques will remain a high priority, even when full economic recovery gains momentum. – Demica white paper 2010.
  • According to Aberdeen’s latest research, Ariba’s solution set maps very nicely against the top strategies for managing cash and optimizing working capital.
  • Ariba Collaborative Business Commerce offers solutions to Buy, Sell, and Manage Cash Manage Cash is a collaborative finance management process that improves the financial flows between buyers and sellers providing greater visibility and control from order to invoice to payment. The related solutions we sell on the buy-side include Invoice &amp; Payment Management and Working Capital Management. All of these solutions leverage the Ariba Network for supplier enablement, connectivity, and collaboration.
  • Speaker: Christiaan van der Valk, CEO, TrustWeaver   Christiaan co-founded (2001) TrustWeaver, a Sweden-based provider of innovative software-as-a-service IT compliance solutions servicing many of the world’s largest corporations. At ICC’s Paris-based secretariat, Christiaan managed policy and self-regulatory activities relating to e-business, telecom and IT. Christiaan has been closely involved with international and European legal, policy and standards projects in the fields of e-commerce and in particular security, contracting, privacy and e-signatures. He is a core member of the CEN E-Invoicing Workshop, member of a number of European Commission focus groups, and co-chairs the ICC EBITT Commission’s Task Force on Security and Authentication. So we are clearly fortunate to have the time and expertise of our special guest, Christiaan van der Valk. Christiaan.
  • Manage Cash Expert Panel

    1. 1. Manage Cash Expert Panel CFO Perspective – Sam Knox, CFO Research Global Compliance Perspective – Christiaan van der Valk, TrustWeaver © 2011 Ariba, Inc. All rights reserved.
    2. 2. Key Issues for Finance % of Firms Citing Strategies as Critical and Major Priorities Source: The Hackett Group 2010 Key Issues Study © 2011 Ariba, Inc. All rights reserved.
    3. 3. What the Corporates Are Saying <ul><li>T he current situation forces us to think about where can we get liquidity — and it is not necessarily the banks that are providing the best services and the best technological capabilities. </li></ul>© 2011 Ariba, Inc. All rights reserved. Source: Global Finance Roundtable: Treasury and Cash Management, January 2009 http://www.gfmag.com/archives/21/384-features.html Dennis Sweeney   Deputy Treasurer, General Electric working capital challenges “ “
    4. 4. Top Strategies for Managing Cash © 2011 Ariba, Inc. All rights reserved.
    5. 5. Manage Cash Better with Ariba Collaborative Finance Management Solutions Sales & Marketing Finance IT Accounts Receivable BUYERS Sourcing & Procurement Finance IT Accounts Payable Improve spend control and performance with reduced costs, lower risk, and improved compliance. Improve cash flow timing and returns while mitigating supply chain liquidity risk Accelerate sales through efficient processes and improve customer relationships Ariba Collaborative Finance Mgt Invoice & Payment Management Working Capital Management Ariba Network Solutions SELLERS © 2011 Ariba, Inc. All rights reserved. BUY MANAGE CASH SELL Electronic Invoicing Matching & Compliance Scanning & Workflow Remittance Detail & Check-to-ACH Discount Professional Supply Chain Finance Receivables Finance Impact Assessment Supply Chain Collaboration Supplier Enablement Supplier Information Management Connectivity Services
    6. 6. Sam Knox CFO Research Managing Risk, Working Capital, and Supplier Relationships in the Emerging Recovery © 2011 Ariba, Inc. All rights reserved.
    7. 7. Top-Line Findings from The New Deals March 2011 <ul><li>Survey and interviews with senior finance executives at large companies in North America, Europe, and Asia says: </li></ul><ul><li>Shift from cost containment to growth agenda </li></ul><ul><li>Relationships with third parties will be essential to respondents’ “ability to thrive” in the recovery </li></ul><ul><li>Downturn led companies to pressure suppliers and alter supply chain activities </li></ul><ul><li>Complexity, resource scarcity, and supplier resistance often limit improvement efforts </li></ul><ul><li>Those who implemented technology to link with external partners are more confident in forecasting capabilities </li></ul>© 2011 Ariba, Inc. All rights reserved.
    8. 8. Companies Seek Partnerships in the Wake of the Downturn © 2011 Ariba, Inc. All rights reserved. As a result of the economic downturn, my company is _______to pursue strategic partnerships (i.e., joint ventures, alliances, alternative financing arrangements, exclusive sourcing arrangements, etc.). <ul><li>Partnerships during the downturn: </li></ul><ul><li>Drive cost out of the business </li></ul><ul><li>Ensure liquidity and preserve cash </li></ul><ul><li>Now, during recovery: </li></ul><ul><li>Pursue growth </li></ul><ul><li>Ensure supply </li></ul><ul><li>Limit risk </li></ul>© 2011 Ariba, Inc. All rights reserved.
    9. 9. Concern about Collaborator Conflict Will pursue… Will avoid… Source “ Long term alliances, exclusive arrangements, long term commitments, joint ventures if necessary. Why? Investment cost and risk growing, along with less players with high capability, leads to stronger alignment to share cost and risk…” “ Partnerships without shared values, goals, and expectations ; these often fail.” CPO in the Auto/ Industrial/Mfg. segment, $1B-$5B We are very actively pursuing long-term alliances and acquisitions of key strategic companies in our operating space. These activities will help strengthen our brand and continue to reach a more diverse customer base. Partnerships in countries which have weak intellectual property laws. Countries with weak laws makes enforcing contracts almost impossible. Courts in those countries not sympathetic to international business law and norms. Finance director in the HW/SW/ Networking segment, $5B+ © 2011 Ariba, Inc. All rights reserved.
    10. 10. Companies Press Suppliers for Better Prices—even as They Seek Long-term Strategic Partnerships © 2011 Ariba, Inc. All rights reserved. As a result of the economic downturn, has your company undertaken any of the following efforts to better manage its suppliers?
    11. 11. But in Buyers’ Market, Sellers Are Less Able to Gain Favorable Prices and Terms from Their Customers. © 2011 Ariba, Inc. All rights reserved. As a result of the economic downturn, has your company taken any of the following actions to better manage its customers?
    12. 12. Downturn Drove Companies to Put Pressure on Suppliers and to Automate Supply Chain Activities. © 2011 Ariba, Inc. All rights reserved. © 2011 Ariba, Inc. All rights reserved.
    13. 13. Forecasting Capabilities Tied to Technology Adoption My company will be able to forecast its business performance _____________ over the next two years, compared to the past five years. © 2011 Ariba, Inc. All rights reserved.
    14. 14. Working Capital Management Will Continue to Receive Improvement Efforts To what extent will your company seek to improve the following dimensions of working capital over the next two years? © 2011 Ariba, Inc. All rights reserved.
    15. 15. Complex Supply Chains and Resource Scarcity Are Greatest Obstacles to Improving Supplier Relationships. © 2011 Ariba, Inc. All rights reserved. In your opinion, which of the following, if any, interfere most with your company’s ability to improve its relationships with suppliers?
    16. 16. Christiaan van der Valk CEO TrustWeaver AUTOMATION & COMPLIANCE © 2011 Ariba, Inc. All rights reserved.
    17. 17. Dimensions of Compliance <ul><li>Integrity and authenticity </li></ul><ul><li>Mandatory agreements </li></ul><ul><li>Prior approval required? </li></ul><ul><li>Outsourcing of tax-relevant functions allowed? </li></ul><ul><li>Archiving requirements? </li></ul><ul><li>Cross-border processing </li></ul><ul><li>Cross-border archiving </li></ul><ul><li>Form and format of invoices </li></ul><ul><li>Content of invoices </li></ul>© 2011 Ariba, Inc. All rights reserved.
    18. 18. Why would the auditor trust your accounts? Types of ex-post audit evidence of input source: Intrinsic (portable) evidence Historical context data (audit trail) Internal coherence of complex data Historical 3 rd party audit reports © 2011 Ariba, Inc. All rights reserved.
    19. 19. End-to-end Compliant Process © 2011 Ariba, Inc. All rights reserved.
    20. 20. Automation Is Key, but Major Savings Can Be Achieved Without © 2011 Ariba, Inc. All rights reserved.
    21. 21. Average Risk © 2011 Ariba, Inc. All rights reserved.
    22. 22. Total Life Cycle Risk Mitigation © 2011 Ariba, Inc. All rights reserved.
    23. 23. Takeaways <ul><li>Compliance has many facets that must be managed </li></ul><ul><ul><li>Change management is key </li></ul></ul><ul><ul><li>Countries have different approaches </li></ul></ul><ul><li>Challenges can be overcome by focusing on common denominators and mature good practice definitions </li></ul><ul><li>Risk-free global e-invoicing is not an abstract thing of the future </li></ul><ul><ul><li>Extremely cost-effective future-proof solutions exist </li></ul></ul><ul><ul><li>Used successfully by thousands of companies already </li></ul></ul><ul><ul><li>Tax administrations love it </li></ul></ul><ul><li>No company can afford to ignore the extraordinary benefits of e-invoicing </li></ul>© 2011 Ariba, Inc. All rights reserved.
    24. 24. Questions © 2011 Ariba, Inc. All rights reserved.
    25. 25. “Safe Harbor” and Confidential Information Statement <ul><li>This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. </li></ul>© 2011 Ariba, Inc. All rights reserved.
    26. 26. Manage Cash Expert Panel CFO Perspective – Sam Knox, CFO Research Global Compliance Perspective – Christiaan van der Valk, TrustWeaver © 2011 Ariba, Inc. All rights reserved.

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